ORDINANCE
CITY OF NEW ORLEANS
CITY HALL: December 16, 2010
CALENDAR NO. 28,269
NO. ______MAYOR COUNCIL SERIES
BY:COUNCILMEMBER HEAD (BY REQUEST)
AN ORDINANCE to generally approve assignment to the New Orleans Redevelopment Authority (“NORA”) by the City of New Orleans of authority to acquire abandoned or blighted property by expropriation prior to judgment in the trial court fixing the amount of compensation due the owner thereof, including properties that have been declared blighted through the administrative hearing process, properties adjudicated to the City for tax delinquency and made available to NORA in accordance with Cooperative Endeavor Agreement(s) executed between the parties, and/or commercial properties currently tax delinquent as of December 2006, all pursuant to Article I of the Constitution of Louisiana and La.R.S. 19:136, et seq.; to allow the sale of the property acquired pursuant to such expropriations at public or private sale; to establish a fair and equitable policy having uniform application for determining the sale price; to declare that such takings have a ‘public purpose’ as said term is defined in Article I of the Constitution of Louisiana and to declare that such takings are necessary and useful to promote the public health and safety for the purposes of La.R.S. 19:136, et seq.; and otherwise to provide with respect thereto.
WHEREAS it is well-recognized that control of the large and rising number of abandoned and blighted properties in the City of New Orleans, the slowing of urban blight, the revitalization of economically depressed areas of the City, and the encouragement of the upgrading and rehabilitation of neglected properties by means that will ensure that such properties will return to the economic stream of commerce and expand the tax base of the City are highly beneficial public purposes of the City;
WHEREAS La.R.S. 19:136.1 defines “Governing authority” as the City of New Orleans or any assignee thereof authorized by the municipality to carry out the purposes of expropriation authority pursuant to La.R.S. 19:136 et seq.;
WHEREAS, the City desires to assign to NORA nonexclusive expropriation authority pursuant to La.R.S. 19:136 et seq.;
WHEREAS this assignment by the City shall be limited to abandoned properties, properties that have been declared blighted through the administrative hearing process, properties adjudicated to the City for tax delinquency and made available to NORA in accordance with Cooperative Endeavor Agreement(s) executed between the parties, and/or commercial properties currently tax delinquent as of December 2006;
WHEREAS, Section 4(B)(2)(c) of Article I of the Constitution of Louisiana allows expropriations of properties for a “public purpose” when such expropriations have as their object the removal of a threat to public health or safety caused by the existing disuse of the property, and La.R.S. 19:136 et seq., allows the City or its assignee to acquire abandoned or blighted property prior to judgment in the trial court fixing the amount of compensation due to the owner of the abandoned or blighted property in order to return the same to commerce;
WHEREAS, such state laws assist the City in fulfilling the public purposes above described;
WHEREAS, La.R.S. 19:136.3(3)(a) requires the adoption by the governing authority (City Council) of an ordinance generally authorizing the taking of abandoned or blighted property and declaring that it is necessary or useful for the purposes of La.R.S. 19:136 et seq.; and,
WHEREAS, La.R.S. 19:136.12 allows the City or its assignee to sell property acquired pursuant to such expropriations at public or private sale and requires that, before any such sale may be made, the governing authority (City Council) shall enact an ordinance generally approving such sales and stating that such sales may be by private sale and shall establish a fair and equitable policy which shall have uniform application for determining the sale price.
SECTION 1. THE COUNCIL OF THE CITY OF NEW ORLEANS HEREBY ORDAINS that the City generally approves the assignment of limited authority to the New Orleans Redevelopment Authority (“NORA”) by the City of New Orleans for the acquisition of abandoned or blighted property by expropriation prior to judgment in the trial court fixing the amount of compensation due to the owner thereof, including abandoned properties, properties that have been declared blighted through an administrative hearing process, properties adjudicated to the City for tax delinquency and made available to NORA in accordance with Cooperative Endeavor Agreement(s) executed between the parties, and/or commercial properties tax delinquent as of December 2008, all pursuant to La.R.S. 19:136, et seq.
SECTION 2. Such aquisition have as their object the removal of a threat to public health or safety caused by the existing disuse of the property and therefore have a public purpose within the meaning of Section 4(B)(2)(c) of Article I of the Constitution of Louisiana; and such acquisition are necessary and useful for the purposes of La.R.S. 19:136, et seq.
SECTION 3. NORA acting in the capacity defined herein shall be responsible for complying with all requirements of La.R.S. 19:136 et seq., as a juridical entity in its own name for all properties acquired pursuant to such expropriations, and in consideration for said defined assignment NORA agrees to indemnify and hold the City harmless for any and all actions taken by NORA relative to the property expropriated as authorized herein.
SECTION 4. At no point shall NORA represent the City in any legal proceeding and the City shall have no obligation to represent NORA in any legal proceeding.
SECTION 5. NORA is authorized to execute acts of sale of properties acquired pursuant hereto. NORA may sell such property acquired in accordance with La.R.S. 19:136.12 at public or private sale. In connection with the private sale of properties acquired pursuant hereto, the sale price shall be the appraised value, as established by an appraiser licensed under Louisiana law, plus compensation to NORA for the cost and expense incurred in connection with such acquisition; or if a court determines in the expropriation that the property is valued at a greater or lesser amount, the sale price shall be the amount that the court determines to be the value of the property. NORA is further authorized to transfer ownership of any of the properties described in Sections 1 and 2 as provided herein consistent with NORA statutes, policies, procedures, and with the CEA between NORA and the City of New Orleans.
SECTION 6. All acts of sale of properties acquired pursuant to expropriations described herein shall provide that the sale is subject to revocation or dissolution in the event the purchaser fails to renovate such property, or otherwise develop and build on such property, within 270 days after the date of the sale, or such longer period of time as may be approved for good cause in writing by NORA. The renovation shall be consistent with the requirements of the New Orleans City Code, New Orleans Building Code, and the Comprehensive Zoning Ordinance as applicable.
SECTION 7. NORA shall assure that 25% of the properties expropriated and transferred via expropriation authority granted herein shall be used for affordable housing for families earning up to 150% of Area Median Income.
SECTION 8. NORA shall provide a report every six months from the date of adoption of this ordinance. NORA’s report shall be provided to the Clerk of Council of the City Council of New Orleans. Said report shall include the number and location of any properties expropriated under this authority and the status of redevelopment or renovation of the expropriated properties.
SECTION 9.That the authority granted in this ordinance shall not be utilized in the area bounded by the Industrial Canal, the Mississippi River, Orleans Parish Line and Florida Avenue (Lower Ninth Ward).
ADOPTED BY THE COUNCIL OF THE CITY OF NEW ORLEANS ______
______
PRESIDENT OF THE COUNCIL
DELIVERED TO THE MAYOR ON ______
APPROVED:
DISAPPROVED: ______
______
MAYOR
RETURNED BY THE MAYOR ON ______AT ______
______
CLERK OF COUNCIL
ROLL CALL VOTE:
YEAS:
NAYS:
ABSENT: